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Selling A Rental Property For 145k We Have Had For Approx 20 Years. Bought The Property For $1.00. We Make 80k.

Having a dispute with a tenant or landlord? Rental Law discussion

Selling A Rental Property For 145k We Have Had For Approx 20 Years. Bought The Property For $1.00. We Make 80k.

Postby Avrum » Fri Jan 29, 2016 1:17 am

My husband and I "bought" a rental property from a realtive for $1.00...approx 20 years ago. We are selling it for 153K and after realtor fees we end up with $143800. We do have an $86,000 mortage on it. We have never lived in the house. Our income this year will be approx 80,000, maybe a little less. I am trying to figure out what our capital gains taxes will be in NY state
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Selling A Rental Property For 145k We Have Had For Approx 20 Years. Bought The Property For $1.00. We Make 80k.

Postby demetrius » Fri Jan 29, 2016 2:50 pm

Your mortgage does not matter(that is, when figuring capital gains, the amount you cleared after the mortgage is irrelevant.)You bought a capital asset for $1, and you sold the capital asset for $145,000. So your capital gain would be $144.999.There may be NY exceptions for rental property, but that would take local research. One question would be: was the rental property considered a separate business, and did the separate business own the property?   ElBanditoRoso 59 months ago
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Selling A Rental Property For 145k We Have Had For Approx 20 Years. Bought The Property For $1.00. We Make 80k.

Postby Lewi » Sun Jan 31, 2016 8:18 pm

Capital gains = the difference between what you bought it for and what you sell it for....prepare to pay up. You've had income/profits for 20 years....time to pay the taxman   Skippy? 59 months ago
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Selling A Rental Property For 145k We Have Had For Approx 20 Years. Bought The Property For $1.00. We Make 80k.

Postby Blane » Wed Mar 02, 2016 4:14 pm

My husband and I "bought" a rental property from a realtive for $1.00...approx 20 years ago. We are selling it for 153K and after realtor fees we end up with $143800. We do have an $86,000 mortage on it. We have never lived in the house. Our income this year will be approx 80,000, maybe a little less. I am trying to figure out what our capital gains taxes will be in NY state
Blane
 
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Joined: Mon Apr 07, 2014 8:10 pm


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